Nvidia Corp.‘s (NASDAQ:NVDA) The blockbuster third-quarter numbers on November 19 were a rebuke to the growing chorus of AI bubble warnings, sparking a rapid risk-on rally that spread across asset classes.
View the NVDA share price here.
NVDA Earnings Defy AI Bubble Chorus
This broad market reprieve defied the dire predictions of a group of experts who have compared the AI frenzy to the dot-com debacle. OpenAI CEO Sam Altman warned in August that investors are “over-enthusiastic,” echoing Bridgewater’s founder Ray Galiowho sees parallels with the excesses of the 1990s.
Legendary investor Mark Mobius predicted one 40% stock drop in November, citing frothy valuations and uncontrolled spending, while Apollo’s Torsten Slok the current AI hype is considered ‘bigger than the internet bubble’.
Even JPMorgan’s Jamie Dimon and the IMF identified risks of overinvestment, with 95% of AI pilots failing to achieve ROI, according to recent analysis.
However, Nvidia’s blow underlined the continued demand for hyperscalers:Microsoft Corp. (NASDAQ:MSFT), Metaplatforms Inc. (NASDAQ:META)And Amazon.com Inc. (NASDAQ:AMZN) a doubling of capital investments, confirming Huang’s rejection of “much talk of an AI bubble.”
Results drive recovery in ‘Risk-On’ assets
The gains generated profits that far exceeded the technology sector. Crypto assets, battered by AI skepticism, recovered sharply: Bitcoin climbed 1.97% to $92,608.46, Ethereum added 0.33% to reach $3,035.46, as investors shifted to high-beta plays.
Small-cap proxies like the Russell 1000 rose 0.34% to 3,620.03, providing relief for growth stocks caught in the crossfire.
Even non-tech heavyweights joined the rise – the Dow Jones Industrial Average, more anchored in the industrial sector, gained 0.10% to end at 46,138.77 points – while gold rose to $4,070.54 an ounce.
The US dollar index rose 0.05% to the level of 100.2820.
Related: Nvidia says rising demand for AI chips could push Blackwell-Rubin’s revenue above $500 billion target as shares rise more than 5% after hours
Bulls push back on Burry’s depreciation story
The social media buzz about X reinforced the counter-narrative, especially the targeting Michael Burry‘s bearish position.
The ‘Big Short’ icon, who deregistered his Scion fund after shorting Nvidia, claimed hyperscalers are inflating profits by overstating GPU lifespans at 5-6 years, rather than a true 2-3 year cycle, masking depreciation fraud amid rapid chip obsolescence.
After the earnings results, CFO of Nvidia Colette Kress shot back and revealed that May 2020 A100 GPUs will remain at “100% utilization” in November 2025, thanks to software upgrades like CUDA that increase the viability of the hardware.
Nvidia outperforms Nasdaq in 2025
Shares of NVDA are up 34.86% this year, while the Nasdaq Composite and Nasdaq 100 indexes have returned 17.03% and 17.47%, respectively.
NVDA closed 2.85% higher at $186.52 each on Wednesday and was up 5.08% after-hours. It rose 27.85% over the year.
It maintained a stronger price trend in the medium and long term and a weak trend in the short term, with a poor value position. Additional performance details, according to Benzinga Edge Stock Rankings is available here.
Futures for the S&P 500, Nasdaq 100 and Dow Jones indexes traded higher on Thursday after rising on Wednesday.
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Disclaimer: This content was produced in part using AI tools and was reviewed and published by Benzinga’s editorial staff.
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